When are the Euro-zone flash CPIs and how could they affect EUR/USD?

Euro-zone flash CPIs overview

Eurostat will publish the first estimate of Euro-zone inflation figure for December at 1000 GMT today. The headline consumer inflation (CPI) is expected to tick down to 1.8% on a yearly basis while the core inflation is seen holding steady at 1.0% y/y rate during the reported month.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 30 pips in deviations up to 1.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 45-50 pips.

How could affect EUR/USD?

Yohay Elam, FXStreet's own Analyst offers important technical levels ahead of the key release: “1.1425 serves as an initial hurdle as it is the convergence of the BB 4h-Middle, the SMA 100-1h, the SMA 5-1d, and the BB 1h-Upper. Further above, the hard cap is at 1.1485 where we note the potent 100-day SMA, the BB 1d-Upper, the PP 1d-R2, and last week's high. It will be tough for the pair to move above this level.”

“Looking down, support is slightly weaker. 1.1355 is the confluence of the BB 1h-Lower, the Fibonacci 61.8% 1m, last week's low, and the Fibonacci 61.8% one-day. The path low is full of minor cushions, but significant support awaits only at 1.1272 where we see the meeting point of last month's low, the PP 1d-S2, and the Fibonacci 161.8% one-week,” he added further.

Key Notes

   •  Eurozone: Core inflation likely to remain unchanged at 1.0% y/y - TDS

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About Euro-zone flash CPIs estimate

The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).